Retirement accounts as collateral

[Dan Krupa]

Question for the smart masses. I am catching up on podcast and I listened to episode 55 featuring @Jimmy Moncrief. He stated you could use a retirement account as collateral for an unsecured loan.  Does anyone know anything about that process?

Example: A person has 50k in a 401k or IRA account. Instead of cashing out and paying the penalty and taxes could you roll that in a self directed IRA and also use that money to secure a 25k unsecured loan?